Business Insider recently took at look at the financial history of Michelle and Barack Obama to explain just how they went from being middle class to multi-millionaires. As Senator, Obama was pulling in $80,287 plus another $32,144 from the University of Chicago Law School where he taught as a lecturer. Add to that Michelle’s salary from the University of Chicago Hospitals, where she was an administrator. (According to FactCheck.org, Michelle went from earning $121,910 in 2004 as an executive director at the hospital to making $316,962 in 2005 as a vice president.)
But the couple began raking in serious dough from three investment assets in 2004 the article says. First was the Illinois State Senate Pension Fund, worth between $50,000 and $100,000. Then there were investments in funds with investment management company Vanguard, through which had investments in the Vanguard Wellington Fund (worth between $100,000 and $200,000) and $50,000 to $100,000 invested in the Vanguard Wellesley Fund. Obama’s book deal for The Audacity of Hope, about his famous 2004 Democratic National Convention speech, pushed him into the millionaire bracket.
If the Obamas could invest before they had millions, so can any woman with money smarts.
When many women consider investing, they think you need lots of money to get started. Not so, says small business consultant and “worry-free living” consultant Princess Clark-Wendel, president of Princess Clark Consulting Inc. But don’t jump into investing blind.
Before you invest any cash, do your research about stocks, bonds and mutual funds. And, figure out an investment strategy with a professional money manager, financial consultant or broker. “Find a financial advisor to help you find products that will meet your financial goals,” says Clark-Wendel.
Clark-Wendel sent over three top tips via email.
1. Set financial goals. Spend some time thinking about what you what your money to do for you. Do you need to pay for your kid’s college education? Are you saving for retirement?
2. Know your time horizon. When will you need the money?
3. Know your financial tolerance for risk. A large gain could result in a large lost. Could you stomach it?
Call us when you’re rich!